Finance minister AMA Muhith on Wednesday said there will be new announcement to off-load government stakes in the local and multinational companies in the share market.
He said this after a meeting with the officials of Dhaka Stock Exchange at his office. The finance minister said decision of off-loading of the government’s stakes in the companies was taken earlier.
But the implementation of the decision was postponed due to unfavorable situation in the market, he said.
Muhith said the situation is now favorable.
Around 50 companies in which the government has shares were selected in 2003. The government wanted to off-load certain portion of its shares in the share market. Still the government could not off-load its stakes in many companies including Unilever Bangladesh Ltd and Sanofi Bangladesh Limited.
The government’s stake in Unilever Bangladesh is 39.2 per cent.
Muhith said Securities and Exchange Commission has already been asked to take steps in this connection.
He said the government wanted to make the share market as an income generating source for the investors.
He, however, admitted that the worst-ever share market debacle in later 2010 and early 2011 could not be avoided because of lack of timely steps and overvalued share prices.
DSE daily turnover dipped to around Tk 200-Tk 300 crore in last few days from Tk 3,249 crore in December 2010, before the stock market crash as the benchmark general index dropped from 8,918.51 points to around 4,100-4,200 points.
Muhith said the SEC has been strengthened following changes in the law and rules.
He said the DSE officials made some demands like five-year tax holiday for DSE and Chittagong Stock Exchange, establishment of independent clearance house and cutting of stamp duty to 1.5 per cent.
The DSE officials also demanded for increase in the number of brokerage houses.
Muhith said final decision on the DSE demands will be taken by the next elected government.
-With New Age input
